Response Essay Sample on Amazon

Response to Elaine

1. I agree that Amazon can use the troves of data of what people buy as a major ad platform online marketplace. Although it is the third largest retailer, it is the biggest online shop in the country. Meaning, it should not only use the data on what people buy for both monitoring and tracking the performance of its stores worldwide. Consequently, the company will know the purchasing, entertainment, and performance of both brick-and-mortar and online stores (O'Reilly & Stevens, 2018). Amazon Alexa is an important component that adds to the troves of data Amazon receives on what people buy. Being that it is voice activated and has familiarities to Amazon customer's voices, it allows Amazon to respond to their requests quickly hence adding them a competitive advantage.

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2. I agree that Amazon as an add-seller and e-retailer is an awkward mix because it also hosts other e-retailers on the platform hence increasing competition. Also, I believe that it helps in establishing one platform for buyers and suppliers. Nevertheless, the mix ensures that Amazon gets the return on investment regardless of the e-retailer (O'Reilly & Stevens, 2018). Despite the return on investment, it encourages low prices in products since they always set their prices low to attract customers.

3. I believe that, just like you have stated, e-commerce will continue to impact the B2B business model. While e-commerce positively responds to the administrative overhead and appropriate behavior in B2B, it leads to a further layer of complexity. Just like you have described, in e-commerce, there is no opportunity for errors lest the entire systems are exposed to inaccuracies.

Response to Janine

1. I agree that Amazon has a large amount of data because of its size and market share. This is depicted in its buying history and behavior, as well as its video service history. However, I believe that apart from the two uses of data, Amazon can use the data in secure, monitor and track the performance of its stores. One example is Amazon Alexa which uses both voice-activated and customer voice similarities (PR Newswire, 2014). As such, I agree that it is a source of competitive advantage to Amazon. It improves the performance and productivity of the company by making the execution of tasks easier and faster.

2. Just like you, I also believe that being an ad-seller and e-retailer creates tension since it may require Amazon to promote the brand of competitors. Also, I think that it puts Amazon's products at constant lower prices to avoid the buyers choosing competitor's products. While this situation may appear as a competitive advantage, the mix makes it hard for Amazon to control another brand on its platform. It is because managing the distribution of a company is almost impossible. Thus, by promoting the brand of competitors and maintaining constant low prices, Amazon e-commerce platform is promoting tension between online and brick-and-mortar stores, and brands that provide similar products (PR Newswire, 2014).

3. I agree that the growth of e-commerce in the country has gone through stages like for the past thirty-five years. Technology is always predicted to evolve and increase customization to a need. Thus, it has improved the buying experiences of customers and interaction between Amazon and supplier thus enhancing collaboration (PR Newswire, 2014). However, increased online increased competition increases the cost of inventory hence showing that the technological advancement of e-commerce will continue to expose Amazon to risks based on its relationship with other e-retailers and competing brands.

Response to Tonja

1. I agree that Amazon has a large variety of data because it is involved varieties of lines of business which put them in a position to know the purchasing habits and preference of customers. Thus, the data can be used for various purposes including monitoring and tracking the performance of both online and brick-and-mortar stores (O'Reilly & Stevens, 2018). While its competitors like Facebook and Google may also sell ads, they lack customer purchase data which is only available to retailers. Also, while the company is still unsure regarding the use of Amazon Alexa in future, encouraging clients to use the name of products during orders ensure that the technology equally gathers consumer data.

2. I agree with your statement arguing that ad-seller and e-retailer is an awkward mix for Amazon because it puts the company in the position of both seller and competitor. I believe that it offers a perfect opportunity for interaction between the seller and buyer. While the interaction provides traffic and promises increased profitability for the company, being that the platform also contains competitor's product is, Amazon has to maintain low prices regardless of the distributor.

3. It is true B2B e-commerce model reduces the cost of operation, increases productivity, and motivate performance. It ensures that both parties initiate activities in-depth understanding of the supply chain, and decreased inventory costs. It is challenging too. However, B2B e-commerce requires analysis of its impact of the environment like natural disasters and the cost of fuel (O'Reilly & Stevens, 2018). Both of them have effects on the business chain. Nevertheless, the model is effective, and opportunities for improvement will make e-commerce better and a long-term model.

References

O'Reilly L. & Stevens, L. (2018, Nov. 27). Amazon, with little fanfare, emerges as an advertising giant. The Wall Street Journal. Retrieved from https://www.wsj.com/articles/amazon-with-little-fanfare-emerges-as-an-advertising-giant-1543248561?mod=searchresults&page=1&pos=19 (Links to an external site.)

Links to an external site.PR Newswire. (2014, February 20). The Human Bounce Rate: Can (and Should) Retail/Wi-Fi Analytics Help Retailers Survive in the Age of Amazon? PR Newswire US.